Auditing
Exam Answer Key
Course Introduction
Auditing is a comprehensive course that introduces students to the principles and practices of auditing in both public and private sectors. The course covers the audit process, including planning, evidence gathering, evaluation, reporting, and the roles and responsibilities of auditors. Emphasis is placed on professional ethics, legal liability, audit standards, and the application of audit procedures to ensure financial statement accuracy and compliance. Students will develop critical analytical skills through case studies and simulated audit scenarios, preparing them for professional auditing roles in a variety of organizational settings.
Recommended Textbook
Accounting Information Systems 11th Edition by George H. Bodnar
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14 Chapters
1942 Verified Questions
1942 Flashcards
Source URL: https://quizplus.com/study-set/3390
Page 2
Chapter 1: Accounting Information Systems: An Overview
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161 Verified Questions
161 Flashcards
Source URL: https://quizplus.com/quiz/67264
Sample Questions
Q1) The exchange of business documents such as purchase orders and invoices in an electronic format between the computers of separate organizations is known as A) e-mail.
B) electronic data interchange.
C) computer-integrated information system.
D) electronic document exchange.
Answer: B
Q2) Which of the following is not an objective of a design group or project team charged with creating and implementing a new information system?
A) Securing funding for a new information system
B) Identifying needs to be satisfied by a new system
C) Developing technical specifications for a new system
D) Implementation of a new system
Answer: A
Q3) The source for most information used by lower-level managers is largely
Answer: internal
Q4) ERP II adds collaborative ________ to ERP.
Answer: commerce
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Chapter 2: Systems Techniques and Documentation
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134 Verified Questions
134 Flashcards
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Sample Questions
Q1) ________ ________ is based on the premise that quantitative measurement is essential to the design of efficient procedures.
Answer: Work measurement
Q2) Section ________ of the Sarbanes-Oxley Act states management's responsibility for establishing and maintaining adequate internal control and procedures for financial reporting.
Answer: 404
Q3) Instead of using the on-line storage symbol,a systems analyst wants to use an analytic flowcharting symbol that represents the medium that is used for the file.Which of the following would be the best symbol to use in place of the on-line analytic storage symbol?
A) The display symbol
B) The magnetic tape symbol
C) The document symbol
D) None of these answers are correct.
Answer: D
Q4) The basic ________ symbol represents the making available of data for processing or the recording of processed information.
Answer: input/output
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Chapter 3: Ebusiness and Ecommerce
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119 Verified Questions
119 Flashcards
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Sample Questions
Q1) Electronic commerce poses many problems with consumer's privacy.Small pieces of information that are placed on a user's computer by an electronic merchant are called A) spybots.
B) cookies.
C) worms.
D) viruses.
Answer: B
Q2) The enterprise architecture involves five enterprise architectural domains.
A)True
B)False
Answer: False
Q3) ________ refers to software that serves as a go-between for two applications,enabling communication between them that would otherwise be impossible.
A) Interfacing
B) Bridgeware
C) Middleware
D) None of the above enables communication between applications.
Answer: C
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Page 5
Chapter 4: Transaction Processing and the Internal Control Process
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133 Verified Questions
133 Flashcards
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Sample Questions
Q1) Typically,an organization's internal control process consists of five components. A)True
B)False
Q2) Intentional or reckless conduct,whether intentional or not,and which results in materially misleading financial statements,is called
A) fraudulent financial reporting.
B) corporate crime.
C) management fraud.
D) None of these answers are correct.
Q3) A computer-produced document that is intended for resubmission into the system,such as the part of the utility bill that the customer returns with payment,is a(n) A) invoice.
B) dual-submit document.
C) turnaround document.
D) automated input document.
Q4) Discuss three behavioral issues that should be considered when implementing an internal control plan.
Q5) ________ tend to reduce ________,but they rarely affect the causes.
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Chapter 5: Fraud Examination and Fraud Management
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132 Verified Questions
132 Flashcards
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Sample Questions
Q1) Calibration is part of the fraud triangle.
A)True
B)False
Q2) An example of fraud indicators is
A) mismatch in an inventory count.
B) a cash register that doesn't balance.
C) a suspicious invoice.
D) All of the above are correct.
Q3) A well-prepared interview conducted by a skilled interviewer can sometimes result in a confession that completely unwinds a complicated case.
A)True
B)False
Q4) Type 1 errors occur when
A) a fraud indicator fails to signal fraud.
B) a fraud indicator falsely signals fraud.
C) a fraud indicator turns out not to be a fraud indicator.
D) all of the above
Q5) Fraud detection is often an imperfect process.
A)True
B)False
7
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Chapter 6: Information Systems Security
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170 Verified Questions
170 Flashcards
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Sample Questions
Q1) White hat hackers legitimately probe systems for weaknesses in order to help with security control procedures.
A)True
B)False
Q2) The least common method used to commit computer fraud is ________
Q3) The type of backup which avoids the problems which arise from restoring incremental backups is a(n)
A) full backup.
B) partial backup.
C) archive restoration.
D) differential backup.
Q4) Which of the following forms of social engineering involves impersonation?
A) Contexting
B) Phishing
C) Hypervising
D) Pretexting
Q5) ________ involves running multiple operating systems or multiple copies of the same operating system on the same machine.
Page 8
Q6) Describe the security advantage of virtualization.
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Chapter 7: Electronic Data Processing Systems
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126 Verified Questions
126 Flashcards
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Sample Questions
Q1) A sales order is an example of a source document that may be prepared manually.
A)True
B)False
Q2) Describe how random-access file updating differs from sequential file updating.
Q3) Describe how a son-father-grandfather master file retention system works.Describe how a master file destroyed in an update can be restored using this retention system.
Q4) The essential EDI phases include the physical receipt of the order,validation and authentication,and decryption and translation.
A)True
B)False
Q5) The type of OLRS system in which users do not input,but only request information,is a(n)
A) data entry system.
B) inquiry/response system.
C) file processing system.
D) transaction processing system.
Q6) Sequential-access file updating is simpler than random-access file updating.
A)True
B)False
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Chapter 8: Revenue Cycle Processes
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125 Verified Questions
125 Flashcards
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Sample Questions
Q1) Risk assessment of the sales business process is necessary for compliance with SOX.
A)True
B)False
Q2) To provide an adequate separation of functions in the accounts receivable business process,maintaining the subsidiary accounts receivable ledger should be the responsibility of A) billing.
B) accounts receivable.
C) cash receipts.
D) general ledger.
Q3) A significant difference between a cash sales business process and a cash-received-on-account business process is that
A) no previous customer account balance exists in a cash sales business process.
B) the float is shorter in a cash-received-on-account business process.
C) more direct supervision is required in a cash-received-on-account business process.
D) There is no significant difference between the two business processes.
Q4) The ________ contains much of the information found in a sales order.
Q5) The mail room prepares a(n)________ ________ that documents payments received.
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Chapter 9: Procurement and Human Resources Business
Processes
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118 Verified Questions
118 Flashcards
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Sample Questions
Q1) Vendors found on a company's approved vendor list should possess the attribute(s)of
A) financial soundness.
B) reliability.
C) no conflicts of interest.
D) An approved vendor should possess all of these attributes.
Q2) The greatest amount of internal and business process control in the cash disbursements process comes from
A) the signing of voucher checks by an authorized party.
B) the prenumbering of vouchers and voucher checks.
C) the accounts payable function.
D) a final review of transaction documents prior to the authorization of payment.
Q3) The documents which accounts payable should use to verify a purchase transaction are
A) purchase requisition, receiving report, and invoice.
B) receiving report and purchase order.
C) invoice, purchase requisition, and purchase order.
D) purchase requisition, invoice, receiving report, and purchase order.
Q4) SAP ERP contains the ________ and the ________ HR modules.
Page 11
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Chapter 10: The Production Business Process
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127 Verified Questions
127 Flashcards
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Sample Questions
Q1) Lean production is a production system in which parts are produced only as they are required in subsequent operations.
A)True
B)False
Q2) In a production planning system,which of the following files updates the finished goods inventory file?
A) Completed production order file
B) Production status file
C) Production data file
D) Production loading file
Q3) A GTIN can be 8-14 digits long and can be constructed using several number structures.
A)True
B)False
Q4) There are seven major processing modules in MRP II.
A)True
B)False
Q5) Fixed assets are often the company's largest investment.
A)True
B)False
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Chapter 11: Systems Planning, analysis, and Design
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161 Verified Questions
161 Flashcards
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Sample Questions
Q1) Which of the following design alternatives is the most difficult to evaluate?
A) Deciding whether reports should be generated automatically or on-demand
B) Deciding whether processing should be in batch mode or online
C) Deciding whether the alternatives meet all major objectives for the system
D) Deciding whether existing personnel can manage the system
Q2) Each domain in the enterprise architecture is subject to
A) cost overruns if planning is not carefully completed upfront.
B) government review if the company is publicly traded.
C) the four phases of RUP development.
D) analysis, planning, design, and implementation.
Q3) What are some important factors to consider when evaluating "canned" software?
Q4) The phase of the Rational Unified Process where the software is deployed to end users for testing and training is the ________ phase.
A) inception
B) elaboration
C) implementation
D) transition
Q5) Warnier-Orr methodology uses the basic constructs of sequence,________,and ________.
Q6) ________ are the things objects do and ________ are the data related to objects.
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Chapter 12: Systems Project Management, implementation, operation, control
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133 Verified Questions
133 Flashcards
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Sample Questions
Q1) A Web server is part of a(n)
A) IDE.
B) DB system.
C) application solution stack.
D) None of the above includes a Web server.
Q2) ________ ________ Environment refers to the tools and technologies used to implement a given project.
Q3) One powerful means of testing computer programs involves processing test data.
A)True
B)False
Q4) A Web application framework that has received considerable attention is Ruby on Rails.
A)True
B)False
Q5) Within the project development environment the software application framework provides a structured environment in which to develop software.
A)True
B)False
Q6) What are some of the reasons why time estimates are often inaccurate?
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Chapter 13: Data Management Concepts
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143 Verified Questions
143 Flashcards
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Sample Questions
Q1) Sequential-access files are often referred to as ISAM files.
A)True
B)False
Q2) What defines an entire database being loaded into computer-internal high-speed random access memory or other high-speed electronic storage device?
A) Internal database
B) In-resident database
C) RAM database
D) In-memory database
Q3) The command used in an SQL query to combine fields from several tables is
A) GROUP BY.
B) ORDER BY.
C) WHERE INSTR.
D) INNER JOIN.
Q4) Fields associated with other fields in a logical grouping are known as A) elements.
B) records.
C) data items.
D) attributes.
Q5) ________ fields cross-link segments in tree and network database structures.
Page 15
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Chapter 14: Auditing Information Technology
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124 Verified Questions
124 Flashcards
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Sample Questions
Q1) Auditors with little computer expertise can use ________ to perform audit-related data processing functions.
Q2) Information technology is used to perform some audit work that otherwise would be done manually.The use of information technology by auditors is A) essential.
B) mandatory under AICPA Statements of Auditing Standards.
C) optional.
D) at the sole discretion of the manager in charge of the audit.
Q3) Basic auditing standards may be altered by the technology employed in the system to be audited.
A)True
B)False
Q4) A clear and obvious benefit is obtained from the ________ analysis capability provided by information technology.
Q5) The snapshot technique involves capturing and dumping
A) selected transaction data.
B) the program code itself.
C) selected master file contents.
D) selected memory contents.
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